Apple (NASDAQ:AAPL) Trading 1.3% Higher – What’s Next?

Apple Inc. (NASDAQ:AAPL) traded up 1.3% during mid-day trading on Friday . The stock traded as high as $311.40 and last traded at $308.82. 43,515,711 shares changed hands during mid-day trading, a decline of 7% from the average session volume of 46,947,859 shares. The stock had previously closed at $304.99.

Key Stories Impacting Apple

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple continues to be viewed as one of the best long-term large-cap tech names, with reports highlighting strong iPhone demand, its massive installed base, and the potential for Services to drive the next leg of earnings growth. Apple Services story
• Positive Sentiment: Analysts remain constructive: Evercore ISI reiterated an Outperform rating and raised its price target, while other commentary says Apple can keep compounding earnings and free cash flow as it expands AI features and devices. Analyst commentary
• Positive Sentiment: Apple executives saying the company is still in the “early innings” of spatial computing is reinforcing the view that new product categories could support future growth beyond the iPhone. Spatial computing article
• Neutral Sentiment: Apple’s legal fight with Epic Games remains a drag on sentiment, as the company asked the U.S. Supreme Court to review a contempt order tied to App Store fees. Epic lawsuit article
• Negative Sentiment: Some analysts are becoming more cautious on valuation after Apple’s run to new highs, warning the stock may be due for profit-taking. KeyBanc caution article

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. KGI Securities raised shares of Apple to an “outperform” rating and set a $306.00 price target on the stock in a report on Friday, January 30th. Maxim Group raised shares of Apple from a “hold” rating to a “buy” rating and set a $300.00 price target on the stock in a report on Friday, January 30th. DA Davidson reaffirmed a “neutral” rating and issued a $270.00 price target on shares of Apple in a report on Friday, May 1st. Stifel Nicolaus set a $330.00 price target on shares of Apple in a report on Monday, March 2nd. Finally, Bank of America boosted their price objective on shares of Apple from $320.00 to $325.00 and gave the company a “buy” rating in a report on Tuesday, April 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $308.74.

Apple Price Performance

The company has a market cap of $4.54 trillion, a PE ratio of 37.34, a price-to-earnings-growth ratio of 2.69 and a beta of 1.06. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.02 and a current ratio of 1.07. The stock has a 50 day moving average of $269.64 and a 200-day moving average of $268.63.

Apple (NASDAQ:AAPL) last issued its earnings results on Thursday, April 30th. The iPhone maker reported $2.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.95 by $0.06. The company had revenue of $111.18 billion during the quarter, compared to analyst estimates of $109.46 billion. Apple had a return on equity of 146.69% and a net margin of 27.15%.The firm’s quarterly revenue was up 16.6% on a year-over-year basis. During the same quarter last year, the business posted $1.65 EPS. Equities analysts predict that Apple Inc. will post 8.74 earnings per share for the current year.

Apple Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 14th. Shareholders of record on Monday, May 11th were issued a $0.27 dividend. The ex-dividend date of this dividend was Monday, May 11th. This is a positive change from Apple’s previous quarterly dividend of $0.26. This represents a $1.08 annualized dividend and a yield of 0.3%. Apple’s dividend payout ratio is currently 13.06%.

Insider Buying and Selling at Apple

In other Apple news, insider Ben Borders sold 1,274 shares of the company’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $290.00, for a total value of $369,460.00. Following the sale, the insider directly owned 38,713 shares of the company’s stock, valued at approximately $11,226,770. This represents a 3.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Deirdre O’brien sold 30,002 shares of the company’s stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $255.35, for a total transaction of $7,661,010.70. Following the completion of the sale, the senior vice president directly owned 136,810 shares in the company, valued at approximately $34,934,433.50. The trade was a 17.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 97,759 shares of company stock valued at $24,964,305 in the last three months. Company insiders own 0.06% of the company’s stock.

Institutional Investors Weigh In On Apple

Several hedge funds have recently added to or reduced their stakes in the business. Isthmus Partners LLC raised its position in shares of Apple by 6.4% in the third quarter. Isthmus Partners LLC now owns 97,177 shares of the iPhone maker’s stock worth $25,000 after acquiring an additional 5,808 shares during the period. Sellwood Investment Partners LLC raised its position in shares of Apple by 110.9% in the third quarter. Sellwood Investment Partners LLC now owns 135 shares of the iPhone maker’s stock worth $34,000 after acquiring an additional 71 shares during the period. Lifetime Wealth Management P.C. acquired a new position in shares of Apple in the fourth quarter worth about $41,000. ROSS JOHNSON & Associates LLC raised its position in shares of Apple by 1,800.0% in the first quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker’s stock worth $42,000 after acquiring an additional 180 shares during the period. Finally, LSV Asset Management acquired a new position in shares of Apple in the fourth quarter worth about $65,000. 67.73% of the stock is owned by hedge funds and other institutional investors.

Apple Company Profile

Apple Inc (NASDAQ: AAPL) is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple’s principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.